Business · Companies · 2 hrs ago
Bank of America profit falls 17% as penalty and weaker trading weigh
Bank of America’s third-quarter profit fell 17% from a year earlier, to $6.93 billion.
The Charlotte-based bank said the result included a $1.2 billion regulatory penalty over failures in safeguards against money laundering and other illicit financial activity.
The penalty came as investment banking fees and fixed-income trading revenue fell, although equities trading revenue rose.
Lending income provided support: net interest income increased 8% to $16.4 billion as loan and deposit balances grew.
Without the penalty, the bank said it earned $8.1 billion, or $1.08 per share, while revenue rose 3% to $30 billion.
The results matter because they show higher lending income could not fully offset weaker Wall Street business and the regulatory charge.
CEO Brian Moynihan and CFO Alastair Borthwick were due to discuss the results on an investor call that day.
Bank of America said its third-quarter 2026 profit fell 17% from a year earlier to $6.93 billion.
A $1.2 billion regulatory penalty and weaker Wall Street activity weighed on results, despite higher lending income.
Revenue rose 3% to $30 billion, while net interest income increased 8% to $16.4 billion.
Investment banking fees fell 11% to $1.8 billion, and fixed-income trading revenue fell 17% to $2.6 billion.
Excluding the penalty, the bank reported earnings of $8.1 billion, or $1.08 per share.
- Who
- Bank of America reported the results.
- What
- Third-quarter profit fell 17% to $6.93 billion. A $1.2 billion regulatory penalty and weaker trading and dealmaking weighed on results.
- When
- The results were reported on October 14, 2026.
- Where
- Bank of America is based in Charlotte, North Carolina.
- Why
- The penalty and lower investment banking and fixed-income trading revenue offset higher lending income.
This story does not have two clearly opposing sides.
U.S. regulators charged Bank of America $1.2 billion in fines over failures in safeguards against money laundering and other illicit financial activity.
Bank of America reported its third-quarter 2026 financial results.
- Quarterly net income
- $6.93 billion
- Year-over-year profit change
- Down 17%
- Regulatory penalty
- $1.2 billion
- Revenue
- $30 billion, up 3%
- Net interest income
- $16.4 billion, up 8%
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What people are saying
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